We are regularly asked to complete audits for entities that have been awarded a grant to help complete a specific project. These grants require an independent review to be undertaken and the results of this review reported to the grant supplier with the financial report showing how the grant has been spent on the project.
It is important that prior to the audit commencement, all the necessary information that is required to complete a timely and efficient audit is supplied to the auditor in good time and this will help to ensure that any deadline is met.
A financial report which shows an analysis of the project costs will also have to be completed, reviewed by the auditor and submitted to the grant provider.
Information required during the audit will include the following:
- Payroll records
- Employment contracts for members of staff that have worked on the project
- Time records which show the amount of time spent on the project
- An analysis of other costs suffered during the project with evidence showing how
- Original invoices showing costs suffered
Areas to consider:
- The grant agreement should be carefully reviewed before the project starts to ensure that all eligible costs are determined in advance.
- It is important to ensure that all staff costs included in the financial report agree to time records. A request that time spent on the project is recorded carefully by staff is therefore necessary.
- Most grants allow a certain amount of indirect costs to be included in the overall project costs. These are normally calculated as a percentage of the direct costs.
- Keep all invoices and receipts to ensure that the costs recorded in the financial report can be traced back to the source document
How we can help:
- Our dedicated audit team has experience of grant audits and can complete this work for a competitive fee
Author: Chris Morey, Director, Plus Accounting
Email: chrism@plusaccounting.co.uk
Telephone: 01273 701 200
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